FEATURED ARTICLES ABOUT CAPITAL EXPENDITURE - PAGE 2

MUMBAI: Reliance Communications has recently launched a growth plan by sharing agreements with competitors in zones where it does not have network. The Anil Ambani company has inked its first tieup with Aircel, and plans to add a total of 10,000 base stations as part of such agreements. The company, through these pacts, can cut capital expenditure of around Rs 1,200 crore, said the company's wireless operations' chief Gurdeep Singh . But each time a subscriber uses the network under these agreements, RCOM will have to pay the operator with whom it has a tieup, and will incur a loss if the user's calling rate offers a better plan than the negotiated price between the operators.

NEW DELHI: Phoenix Lamps, Noida-based manufacturer of automotive lamps and Compact Fluorescent Lamps (CFL), is planning a capital expenditure of Rs 100 crore as part of its plan to become a Rs 500-crore company by 2008-09. It plans to double its lamp manufacturing capacity to 150 million pieces per year and enter new product segments like lighting fixtures and LED lighting. During the first nine months of current fiscal, the company clocked a turnover of Rs 121 crore, equally divided between automotive lamps and CFL. "The CFL and automotive halogen lamp market in India is entering high growth phase and we plan to capture an increasing share of the pie by continuously expanding our capacity," company's chairman and managing director H R Gupta told ET. With a capacity to produce 15 million pieces of CFL per month, Phoenix presently accounts for 55% of the country's total installed capacity.

MUMBAI: The Reserve Bank has called upon the government to cut expenditure on subsidies and "use resources so released to step up public capital expenditures". "With limited fiscal and monetary space available to provide a direct stimulus, an expenditure-switching policy is needed that reduces revenue spending by cutting subsidies and using the resources so released to step up public capital expenditures," RBI said today in its annual report for 2011-12 fiscal ended on June 30. Flagging the twin deficits on the fiscal and current account fronts as the main fiscal concern, the report said this switching can help the government improve on both these fronts, while the RBI can accelerate its nearly three-old inflation, which it termed as still "sticky" more aggressively in the meanwhile.

KOLKATA: ITC on Thursday said it was open to acquisition in areas of strategic interest and will spend about Rs 1,800 crore over the next two-three years on modernisation and expansion of its existing facilities. "We will evaluate proposals for acquisitions received from time to time in areas of strategic interest, provided there is a reasonable opportunity to create greater value," a highly placed ITC official said. "Indicatively our capital expenditure spending over the next two-three years would be in the region of approximately Rs 600 crore per annum," the official said.

MUMBAI: State-run Power Grid Corporation has planned a capital expenditure of Rs 12,000 crore for the current fiscal year, much higher than the Rs 9,000 crore spent in the previous year. India's nodal power transmission and distribution utility will invest around Rs 55,000 crore for laying new transmission networks in the country by the end of XI Five Year Plan, managing director S K Chaturvedi said on Saturday. Power Grid's capex will be part of the investment plan of the current Five-Year plan that will be arranged from World Bank, Asian Development Bank, domestic institutions and internal accrual, Mr Chaturvedi said, on the sideline of a conference.

NEW DELHI: The government has asked state-owned Airports Authority of India (AAI) to prune its capital expenditure for it to improve finances and eventually list on the stock exchanges, but the move could undermine the agency's efforts to modernise the country's airports. A finance committee headed by the joint secretary and financial advisor in the civil aviation ministry, EK Bharat Bhushan, has said the airports operator needs to take cost-cutting measures on a fast footing and rationalise airport development work, a senior official of the AAI told ET. AAI is currently modernising 35 non-metro airports besides two metro airports in Chennai and Kolkata, which involves an investment of Rs 12,434 crore.

NEW DELHI: The National Real Estate Development Council ( NAREDCO ) has demanded provisions for including cost of land and building construction in capital expenditure in the Budget 2013 . NAREDCO explained - section 35AD sub-section (5)(ac) & (5)(ad) of Income Tax Act stipulates that deduction of capital expenditure incurred wholly and exclusively for developing and building a housing project under a scheme for slum development or rehabilitation or affordable housing framed by Central or State govt and notified in accordance with the guidelines prescribed is allowed.

MUMBAI: Tata Group firm Trent, which runs Westside and Landmark retail stores, has outlined a capital expenditure of Rs 250 crore for the next three years. This year the company would spend about Rs 65 crore as capital expenditure, Trent Chairman F K Kavarana said at The Annual General Meeting here. The capital expenditure would be met through the company's internal accruals and Trent would go for rights issue, Kavarana said. By the end of this financial year, Trent stores would be spread to 11.5 lakh square feet area from a mere 4 lakh square feet now. Ten more Westside stores would be added this year taking the total number to 37 through the country, Kavarana said.

KOLKATA: The CAG has praised the Trinamool Congress government for improving the fiscal situation in West Bengal but pulled it up for low capital expenditure. "The state government has succeeded in improving the fiscal situation during 2012-13. Revenue receipts grew at a rate of 16 per cent, while the growth of revenue expenditure was 12 per cent," the CAG said in its report tabled in the state Assembly today. It said that not only was the actual expenditure below Budget estimate, capital expenditure was low at only 5.19 per cent of total expenditure during 2012-13, the second year under the new Trinamool Congress government.

NEW DELHI: Government has raised the capital expenditure limit for the defence forces by Rs 13,434.82 crore in the next financial year, increasing allocation for aircraft, naval ships and special projects. Tabling a report on the Defence Services Estimates for 2012-13 in Parliament today, government gave an overview of the planned expenditure under the 'Revenue' and 'Capital' heads. "Out of the net defence budget of Rs 1,93,407.29 crore for 2012-13, the estimates for Revenue Expenditure is Rs 1,13,828.66 crore which shows an increase of Rs 9,035.66 crore when compared with the revised estimates for 2011-12," the report said.